worried about remortgaging!!

bikingbarney

hi all im after some advice.

i am a serving member of the royal air force and own my own home.

we bought the house in nov 2007 for 128000 (mortgage for 124384 which includes higher lending charge and fees)

we went on a 2 year fixed rate with halifax at 6.79% intrest only.

the property has been completely renovated now top to bottom , but due to the current state of house prices is only valued at 139000 at the most.

im worried that i will not be able to get a good mortgage offer when i come to remortgage in a few months time.

most of the good deals are for ltv of 60% and below , so with an 88% ltv im struggling a bit.

have you got any advice on where to look for a good mortgage deal ??


also someone told me that i might be able to class my wifes child benifit and tax credits as earnings?? is this true??

thanks

steve

_Andy_

You will need to speak to your existing lender to see what they can offer, due to the high LTV.
They won't need to re-look at your income etc.

herbiesjp

Indeed Halifax would be your first option

Some brokers may be able to get some slightly better exclusive deals than what they ofer you direct

You can do this 3 months before it expires

bikingbarney

thanks for that.

is it true about being able to class child benifit and tax credits as annual income??

herbiesjp

Some lenders will accept it and other will not

They all have different rules for how much of it they will accept as well

jimbo_the_jetset

What happens at the end of the deal period, do you go onto the Halifax SVR? Surely this is lower than the rate you pay now!!!

We're with Nationwide and didn't re-mortgage due to not very good rates on offer, we're now on the SVR paying 2.5%, can't complain

bikingbarney

im sure it actually goes up slightly from the fixed rate!!!

_Andy_

Your income isn't going to be of relevance - as you're staying with your current lender they won't re-assess.
You say the house would be worth £139k at most, in which case you can guarantee a valuation for mortgage purposes would be less. This would rule out remortgaging to another lender.

bikingbarney

are house values less then when coming to remortgage??

_Andy_

The valuation is going to be conservative. It's very very common for it to be less than what the mortgage-holder thinks it is.
Also you'd need to factor in new fees for the new lender which would increase the mortgage balance.

Judith_W

Andy, if we were to re-mortgage with our current lender, would they revalue the property or take the LTV from the time that we originally mortgaged with them?